Oxley noted that 'the port abounds with fish, the sharks were larger and more numerous than I have ever before observed. The forest hills and rising grounds abounded with large kangaroos and the marshes afford shelter and support to innumerable wild fowl. Independent of the Hastings River, the area is generally well watered, there is a fine spring at the very entrance to the Port'.

In 1821, Port Macquarie was founded as a penal settlement, replacing Newcastle as the destination for convicts who had committed secondary crimes in New South Wales. Newcastle, which had fulfilled this role for the previous two decades, had lost the features required for a place for dumping irredeemable criminals, that being isolation, which was lost as the Hunter Region was opened up to farmers, and large amounts of hard labour, which had diminished as the cedar in the area ran out and the settlement grew in size. Port Macquarie, however, with its thick bush, tough terrain and local aborigines that were keen to return escaping prisoners in return for tobacco and blankets, provided large amounts of both isolation and hard labour to keep the criminals in control. Under its first commandant, Francis Allman, who was fond of flogging, the settlement became a hell, where the convicts had limited liberties, especially in regard to being in possession of letters and writing papers, which could get a convict up to 100 lashes.

The Penal settlement lasted from April 1820 to c. 15 August 1830. The settlement peaked with 1500 convicts by 1825 but by 1828 this had fallen to 530. The commanders of the settlement were:

Because of the lack of liberties of the settlement, GovernorRalph Darling quickly sent there many 'specials' or literate convicts with a decent education who had voiced negative views about him. Later on in the settlement's history, in the 1830s, disabled convicts started to arrive. One-armed men would be grouped together and required to break stones, men with wooden legs would become delivery men, and the blind would often be given tasks during the night which they performed more skilfully than those with sight.[3]

In 1823 the first sugar cane to be cultivated in Australia was planted there. The region was first opened to settlers in 1830 and later on in the decade the penal settlement was closed in favour of a new penal settlement at Moreton Bay. Settlers quickly took advantage of the area's good pastoral land, timber resources and fisheries.

St Thomas's Anglican Church is a Georgian building designed by Francis Greenway and built, under the supervision of military engineer Lieutenant T. Owen, by convicts from 1824 to 1828. This church is among the oldest in Australia and one of the few remaining convict-built churches. Inside there are red cedar box pews that were peculiar to that period in church architecture.[4] The Walker pipe organ is the only one of its type in the southern hemisphere. The castellated tower permits excellent views of the coastline, town and river. This church is now classified by the National Trust of Australia (NSW) and has been registered on the National Estate heritage list.

Tacking Point Lighthouse

In 1830 Major Archibald Clunes Innes built Lake Innes House which grew over the next decade into a luxurious establishment and attracted many notable visitors. It is now a ruin and is managed by the NSW Parks and Wildlife Service.

In 1840 the "Wool Road" from the Northern Tablelands was under construction to enable wool and other produce to be shipped from the port. Port Macquarie was declared a municipality in 1887, but the town never progressed as a port owing to a notorious coastal bar across the mouth of the river.

Over 20 shipwrecks occurred in the Tacking Point area before a lighthouse was designed by James Barnet and erected there in 1879 by Shepard and Mortley. Tacking Point Lighthouse is classified by the National Trust of Australia (NSW).

The estimated urban population of Port Macquarie was 45,341 as at June 2015,[1] having grown 1.1% on prior year and from 39,783 over the prior decade.[1] Port Macquarie is expected to be the fastest growing place in New South Wales. The town is expected to grow from an estimated 43,655 people in 2009 to 58,888 in 2027.[5]

Port Macquarie is a retirement destination, known for its extensive beaches and waterways. The town is also known for its koala population, being the home to the Billabong Zoo (a wildlife park and koala breeding center) and the Koala Preservation Society's Koala Hospital, caring for koalas injured through bushfire, dog attacks and collisions with vehicles.[6]

In 2016 the war memorial was relocated from Town Green to its original location at the intersection of Clarence and Horton Streets.[7]

The residential suburbs stretch to Lighthouse Beach in the south, Thrumster to the west and to North Shore, on the northern bank of the river. In July 2010, Sovereign Hills began development in the west.

Port Macquarie was found to be the least affordable smaller city in Australia by Demographia's 2013 International Housing Affordability Survey.[8]

Port Macquarie's central business district contains two shopping centres, many specialty stores, a marina, and the starting point for the 9km coastal walk, a scenic walking trail that travels from Westport Park, through the Port Macquarie CBD to Tacking Point Lighthouse. The Glasshouse, a centrally located arts, conference and entertainment centre, includes a visitor-information facility. Bus services link the town with Laurieton, Wauchope, Kempsey, Lake Cathie and Bonny Hills.

Transit Hill to the south is crowned by telecommunication towers. The district is the site of two arterial roads which provide a direct link between Lighthouse Beach and Port Macquarie CBD. The main intersection of Pacific and Kennedy Drive is situated midway up Transit Hill.

It is an area of high-priced real estate owing to ocean and city views. Transit Hill borders Lighthouse Beach, Dahlsford, Shelly Beach and Waniora.

Beaches (in order from north to south) are: North Shore, Town Beach, Oxley Beach, Rocky Beach, Flynns Beach, Nobbys Beach, Shelly Beach, Miners Beach (unofficial clothing-optional[9]) and Lighthouse Beach. Only Town, Flynns and Lighthouse Beaches are manned by Surf Life Saving Clubs. Lighthouse Beach is patrolled at only the northern end. Dogs can be walked off-leash at Lighthouse Beach, south of Watonga Rocks, excluding sections at the northern end and Nobbys Beach.

Sea Acres National Park is adjacent to Shelly Beach and contains a Visitor Centre with access controlled rainforest boardwalk.

Hello Koalas Sculpture Trail is a unique and free attraction in Greater Port Macquarie, with over 60 one metre high koala sculptures, beautifully designed and hand painted by selected artists, dotted across the landscape. Port Macquarie has the largest koala population on the east coast of Australia and the Hello Koalas Sculpture Trail reflects the community's commitment to caring for their koalas while providing an engaging way for visitors to explore villages and towns across the region and enhance their stay. Many of the Hello Koalas designs reflect the history and natural beauty of Port Macquarie-Hastings region, while other designs advocate for the importance of koala conservation.

There is also a TAFE campus for further qualifications. Courses are also offered by the University of Newcastle through the TAFE campus. In 2012, Charles Sturt University set up a campus with a small number of programs available in accounting and business studies, health sciences, policing, psychology and social work. This was in response to significant research designed to retain young people in the area and contribute to the growth of the educational standards for the Hastings region.

There is no railway station in Port Macquarie. However, the Port Macquarie CBD and northern suburbs are served by the nearby Wauchope railway station (17 km west of town), and the southern suburbs including satellite towns of Lake Cathie and Laurieton are served by Kendall railway station (30 km southwest). Both stations are on the North Coast Line operated by NSW TrainLink with 3 services daily in each direction towards either Newcastle and Sydney or northwards to Grafton, with travel time to Sydney of approximately 6 hours. There is a railway-operated connecting bus service available from Wauchope railway station to the Port Macquarie CBD.

Road access is via the Pacific and Oxley Highways. The Pacific Highway lies between Port Macquarie and Wauchope, and is the main road for tourists travelling from coastal areas.

Four significant nearby road projects have been completed in recent years to help with road traffic issues in the area:

Pacific Highway – Bulahdelah Bypass[29][30][31] The Bulahdelah bypass/upgrade fills the only missing Pacific Highway link between Hexham and Port Macquarie after the opening of the Karuah to Bulahdelah section(s) 2 and 3 and the Coopernook to Herons Creek upgrade.[32]

Hello Koalas Festival is the world's first festival celebrating Australia's iconic koala and is held annually over the June Long Weekend. Port Macquarie has the largest koala population on the east coast of Australia, its acclaimed Koala Hospital is a national leader in koala conservation and the region's Hello Koalas Sculpture Trail is an award-winning attraction for the community and visitors.[42]